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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: Charles R who wrote (46429)	7/6/2001 4:38:34 PM
From: Road Walker	Read Replies (2) \| Respond to of 275872

Charles, Gaining market share and losing money is not a sustainable business plan. It's pretty simple, you eventually go broke. It's dead end. Why not charge the same price for an equivalent cpu as Intel does? Would AMD then lose all their business, I don't think so, if you do, you don't have much faith in AMD products. Would they lose a few points of share in the short term, probably. In the longer term, would people buy AMD products because they were cheaper, or because they felt they were better? Would Intel have more of a tendency to raise their prices, improving GM's for both companies? Going up against a company with 75% +/- market share, and the economies of scale, and marketing dollars that implies, by selling at a significant discount, it just won't work. Charge the same as Intel, make a few bucks on each processor, invest the bucks in building brand preference. It takes longer, but it sustainable. Consumers like to buy products from companies that say "buy from me 'cause I'm better", not from companies that say "buy from me 'cause I'm cheaper". It's an idea, anyway. Not very original, it's how almost all great companies were built. John

To: Charles R who wrote (46429)	7/6/2001 5:34:35 PM
From: Epinephrine	Read Replies (1) \| Respond to of 275872

Charles, I have a very strong bias in favor of AMD and was one of the ones who was caught totally off guard by this latest announcement, I was not blind enough to think everything was rosy but I didn't think that they were this bad, in retrospect I should have maybe been more prepared for it but we all know that retrospect isn't worth jacked squat don't we? :) Anyway the point is that I am biased and my mind is cloudy, (who was it that called the thread shellshocked once?, hehe that's me right now.) so I want to make sure that I am reading your posts right and am not inserting my own crap in between the lines. 1) You think that AMD is totally doing the right thing by aggressively going for market share and think that it is only their poor management/marketing that is lacking in the current situation (meaning their priorities aren't wrong right now but it is their execution that is to blame for the low asp's and inability to get a business win or sell Durons more effectively)? 2) Even in a worst, worst, worst case situation you think that AMD still isn't some dead duck that's going to get sunk and never recover. Meaning that if in some cataclysm it came down to doing so then they could be a profitable company even if they got out of processors entirely. Maybe this is melodramatic but it has always been part of my premise for investing in AMD. Even if they completely lost the processor wars they wouldn't walk away empty handed. They could be a fully viable company just with flash. I remember you saying that quite explicitly once and just wanted to make sure that you thought that it was still true Ok there's only two, basically I am reading your posts about how much this situation and the way they handled it sucks and am still not getting the total doomsday feel that some other's are purveying today and I want to be sure that's not just clueless hallucinatory hope on my part. I would also be very interested to hear what you think is a fair valuation for AMD, that is right now, in this market environment, given the falling asp's, the price war, and the recent bad news, what do you think is a reasonable valuation? Thanks, Epinephrine